The US treasury auctioned off $22B of 30 year bonds. The following are the results along with the remodel of the main components compared to the 6 month average:
- High Yield 4.535%
- WI rate at time of auction 4.523%
- Tail 1.2 bps vs 0.2 basis point aveeage
- Bid to cover average 2.39X vs 2.44X
- Lead (a measure of domestic demand) 19.1% vs 17.8%. average
- Indirects (a measure of international demand) 66.5% compared to 67.7%.
- Sellers 14.4% vs 14.5% average
Auction grade: C-
There was a positive tail of 1.2bps above the average of 0.2bp. The claim for coverage was slightly below average. The good thing is that the domestic demand was slightly higher than usual. International demand was slightly less than average, and the retailer's discount was around average.
The result is slightly higher with the following:
- 2-year 4.169% To 4.172%
- 10-year 4.300% To 4.310%
- 30-year 4.523% To 4.536%
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